New Issue: W.W. Grainger prices $1 billion 4.6% notes due 2045 at Treasuries plus 155 bps

By Aleesia Forni

Virginia Beach, June 4 – W.W. Grainger Inc. priced $1 billion of 4.6% 30-year senior notes (A2/AA) on Thursday at Treasuries plus 155 basis points, according to an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.919 to yield 4.605%.

The notes sold at the tight end of guidance.

The bookrunners were Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

Proceeds will be used for general corporate purposes, including the repurchase of shares of the company’s common stock and the repayment of about $300 million of debt.

The industrial supply company is based in Lake Forest, Ill.

Issuer:	W.W. Grainger Inc.
Amount:	$1 billion
Description:	Senior notes
Maturity:	June 15, 2045
Bookrunners:	Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
Co-managers:	HSBC Securities (USA) Inc., Loop Capital Markets LLC, BofA Merrill Lynch, MUFG, RBC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
Coupon:	4.6%
Price:	99.919
Yield:	4.605%
Spread:	Treasuries plus 155 bps
Make-whole call:	Treasuries plus 25 bps prior to Dec. 15, 2044, then callable at par
Trade date:	June 4
Settlement date:	June 11
Ratings:	Moody’s: A2
	Standard & Poor’s: AA
Price guidance:	Treasuries plus 160 bps area, tightened from 170 bps area

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